You might be wondering…did he misspell “PIN”?
Personal Account Number (PAN) Truncation is a type of truncation (symbol replacement) where your banking or card account numbers are truncated to protect sensitive financial and personal data.
This most commonly occurs on credit card statements where stars *** are used, instead of showing your account or card numbers.
These measures reduce your risk of experiencing credit card fraud and identity theft.
What happens if a business violates FACTA?
If a business (large or small) is caught doing the wrong thing:
They could face FACTA fines of between $100 to $1000 per violation.
It’s not hard to do, either.
All it takes for a business to violate the FACTA is to make a mistake while programming their credit card machine and neglect to fix the problem.
Here’s an example:
Imagine there is a coffee shop franchise, called Café Del.
Mario, a new Café Del franchisee, carelessly programmed his new credit card scanner incorrectly. He knew he should have set it up more carefully but did not think it was a big deal to show a card’s expiry date on a customer’s receipt.
Fatal error #1
Mario went on with his business, serving coffee and bagels to over 100 customers a day.
About a year later, he gets word from the head office that there is a class action suit against Café Del, and that the complaints are about his location, Café Del Mario!
With nearly all of his customers paying by credit card, Mario’s mistake had escalated to:
100 receipts x 365 days = 36,500 FACTA violations.
The franchise’s lawyers (understandably upset) explained to Mario that this could potentially cost the franchise and Mario up to $1,000 x 36,500 = $36.5 Million dollars in penalties.
All because Mario wasn’t careful.
If you think the number is hyperbolic…
…It is close to the recent actual case in which Subway paid a $30.9 million dollar settlement for their FACTA violations.
It is not just cafés and sandwich shops who are neglecting their duty to protect their customer’s private information. There are companies from all industries who have violated the FACTA.